What to build & how to
     make money out of that
         Social Media?
-A Marketer’s Perspectives
       By Michelle Zo...
What to Expect and NOT to Expect
       From the Presentation
• You will NOT learn what specific features to
  build on So...
Yes, you can build cool stuffs

                 BUT…

What you built          You get PAID



                Who use it?...
Who Use Social Media?
                                   Businesses want to take
                  Consumers        advant...
Consumers vs. Marketers

                                      Marketers…
              Consumers…                Targetin...
Help Businesses to Market to Target Audience
 Marketers Spent on:

 Campaigns/ Ads
 Tools to help them to reach target a...
The Marketer’s Job

Market Segments




                  Message…
Target Audience




                             7
How Marketers Use Social Media?

      Market Segments




                          Find
      Target Audience    Reach
 ...
Microsoft Example




                    9
Microsoft Example




                    10
Microsoft Example




                    11
Microsoft Example




                    12
How to Make Money From
         Consumers?
Think Beyond Ad-Funded FREE SN Services…
         Play “NICHE”



             ...
And go VIRAL …
Use those “Social Network
       Butterflies”




                            14
And be
                    CREATIVE…
The Successful Business Models for Making Money From Consumers


QQ’S MONEY MAKING SE...
How much can you spend on QQ
       services/year?




                               16
US$ 300,000




And that is $30M for your life (100 years)!


                                              17
QQ/Tencent – a BILLION Dollar Company
       QQ Services                                                2008 Result YOY Gr...
QQ’s Money Marking Formula
           Free to HOOK you in
                                                                ...
QQ IM


        20
QQ Instant Messenger
                                               •   Free IM service monetize by
QQ Membership         ...
QQ Monetization: VAS services integrated
                    to QQ Platform




VAP services integrated to
QQ IM platform
...
QQ Show


          23
QQ Monetization: QQ Show
•   QQ Show is the avatar (display picture) that represent the user anywhere in the
QQ platform.
...
QQ Monetization: QQ Show
                Membership Red Diamond
                                                 •QQ Show ...
Always be able to get things
                                            with discount.




                              ...
QQ Show: Take a photo with
       someone
                    Different choice of the
                    background (free...
Q-zone
(Blogging & SN Service)



                          28
QQ Monetization: Qzone and
•
                    Membership Yellow Diamond
    Every customizable element can be purchased...
Q-Zone
•   Features: blog, music box, album, mini house and garden, personalization and decoration, etc.
•   Every element...
•   Qzone plant to show how healthy your Qzone
Album                            •
                                     is ...
Music box
                                    http://93521903.qzone.qq.com/

• Music box can download and play music as ba...
Mini place
•   User can build different houses by purchasing all the furniture and decoration.




                       ...
QQ Game


          34
Buy entry animation for QQ games




                               35
Pay to play QQ games
         A simple online gamble game, QQ takes away 20% of the money



                           Pr...
QQ Pet


         37
Features and Monetization
Virtual pet. Users don’t need to spend much time breeding pet on daily
bases. But they need to c...
Even QQ numbers can make
          $$$!   Monthly subscription fee
                 (10 QQ coins/Month)
                 +...
Thank You!




             40
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What to build & how to make money out of that Social Media

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A framework I presented to web developers to think how companies use social media,
who and why spend money on Social Media. The presentation was aimed to help developers generate new ideas when they build the next cool “stuff”.

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What to build & how to make money out of that Social Media

  1. 1. What to build & how to make money out of that Social Media? -A Marketer’s Perspectives By Michelle Zou November 4, 2009
  2. 2. What to Expect and NOT to Expect From the Presentation • You will NOT learn what specific features to build on Social Media • But you WILL learn a framework to think – how companies use Social Media – who and why spend money on Social Media This will help YOU generate new ideas when you build the next cool “stuff” 2
  3. 3. Yes, you can build cool stuffs BUT… What you built You get PAID Who use it? Who can you make money from? 3
  4. 4. Who Use Social Media? Businesses want to take Consumers advantages of Social Media’s ability to send just the right message to the right people Social Media Customer Marketing Support User publish & share Businesses Jumped Into Social Media!!! Product Developmt. 4
  5. 5. Consumers vs. Marketers Marketers… Consumers… Targeting Communicating FREE! Demand Generating But I will Pay for some “stuff “… ROI…… 5
  6. 6. Help Businesses to Market to Target Audience Marketers Spent on: Campaigns/ Ads Tools to help them to reach target audience (Applications, Widgets, etc.) Business Intelligence / Customer Intelligence Analytical tools Opportunity: Help Marketers to DO THEIR JOB EASILY • 95% of 1,217 business decision makers surveyed late last year said they plan to use social networks. • 53% of more than 300 marketers planned to increase social-media marketing spending (in 2009) - From Forrester Research 6
  7. 7. The Marketer’s Job Market Segments Message… Target Audience 7
  8. 8. How Marketers Use Social Media? Market Segments Find Target Audience Reach Listen Message… 8
  9. 9. Microsoft Example 9
  10. 10. Microsoft Example 10
  11. 11. Microsoft Example 11
  12. 12. Microsoft Example 12
  13. 13. How to Make Money From Consumers? Think Beyond Ad-Funded FREE SN Services… Play “NICHE” 13
  14. 14. And go VIRAL … Use those “Social Network Butterflies” 14
  15. 15. And be CREATIVE… The Successful Business Models for Making Money From Consumers QQ’S MONEY MAKING SECRETS 15
  16. 16. How much can you spend on QQ services/year? 16
  17. 17. US$ 300,000 And that is $30M for your life (100 years)! 17
  18. 18. QQ/Tencent – a BILLION Dollar Company QQ Services 2008 Result YOY Growth • Information: – Portal QQ.com Revenue $1,047M 87% • Communication: IVAS $719M 96% – Messenger (QQ IM, Mobile IM & SMS, Corporate, Web QQ) Mobile VAS $205M 73% – QQ Mail Online Ads $121M 68% • Social networking/Blogging – QQ Zone IVAS • Entertainment: – QQ Live – TV service – QQ Show – Avatars and QQ/Tencent 2008 Revenue Personal Expression Online Ads – QQ Pet Mobile & 11% – QQ Game telecom VAS 20% • Online auction business – Paipai – C2C Auction • Search (Soso) IVAS • Mobile VAS (the above PC 69% services on mobile phones) • Payment – QQ Payment 18
  19. 19. QQ’s Money Marking Formula Free to HOOK you in Digital assets you paid to + Micro-transactions acquire will EXPIRE! + Monthly Subscription (31.4M IVAS + 14.7M MVAS accts) + Ads subscription for “add- ------------------------------------------ on” services $$$$$$$$ ($1.5/month for EACH service) Micro-transactions for “add-on” services ($0.15-$2/transaction) The slides after are a few # of users exposed examples of QQ IVAS business model Free for entry level services 19
  20. 20. QQ IM 20
  21. 21. QQ Instant Messenger • Free IM service monetize by QQ Membership • Ads “VIP3” • VAS services integrated to Ads the QQ IM platform such as avatar (See QQ Show) • VIP Membership The buddy’s avatar, paid or QQ • QQ VIP membership: membership RMB10/month ($1.5/month) subscription to acquire from QQ • Six VIP ranks: VIP1-6, can Show. grow by usage or payment methodologies • QQ membership benefits: – More features: can have large groups; such as faster growth in Free entry level the ranking system; exclusive avatar for emoticons; QQ VAS discounts; female & male more online storage (non- member 16M, VIP members 128M-1.6G) – Discounts in real life services: movie tickets, shopping (online & offline), airline tickets, e- learning – Privilege in QQ games: new games, discount in game Ads avatars, exclusive gifts 21
  22. 22. QQ Monetization: VAS services integrated to QQ Platform VAP services integrated to QQ IM platform 22
  23. 23. QQ Show 23
  24. 24. QQ Monetization: QQ Show • QQ Show is the avatar (display picture) that represent the user anywhere in the QQ platform. • The default avatar is very plain (almost naked). Personalize avatars is very popular in the QQ world, users can customize almost everything, the face, the nose, the eyes, etc. Users can also buy the clothes, accessories and background to make their online images pretty. They expire in 3 months These components are cost 2-4.5 QQ coins each ($0.3-$0.7), users can buy, send gift, or ask as a gift from friends To get the whole set on the left will cost 14 QQ coins ($2) 24
  25. 25. QQ Monetization: QQ Show Membership Red Diamond •QQ Show Red Diamond membership through monthly subscription: Showing in your contact card RMB10/month ($1.5); users lose all the QQ shows acquired once subscription stopped. •Seven ranks: LV1-7, can grow by usage or payment methodologies. Showing in the conversation window •Membership Benefits: all QQ Shows are free to get; special sign to show your membership identity; can set change QQ shows automatically; can send free QQ show gifts to friends; Showing in your profile 25
  26. 26. Always be able to get things with discount. *Ask others to pay for you Buy for other people Buy it • Every small module is personalizable. • A bunch of choices • Affordable prices to buy Add to your ‘wish box’ 26
  27. 27. QQ Show: Take a photo with someone Different choice of the background (free or cost 1- 2QQ coins) Show the photo on QQ- need to pay 3 Q-coins 27
  28. 28. Q-zone (Blogging & SN Service) 28
  29. 29. QQ Monetization: Qzone and • Membership Yellow Diamond Every customizable element can be purchased (0.12 - Qzone Yellow Diamond membership: 1.2USD/element) RMB10/month • Songs in the media library for users to put in their Seven ranks: LV1-7, can grow by usage or music box are for sale (0.3USD/song) • Q-zone membership (1.25USD per month) payment methodologies Benefits: all decorations for Qzone are free to Qzone “mall” to purchase all kinds of get; 1G photo album; special sign to show items: Skin, theme, display pictures, flash, music box, etc. your membership identity Qzone features are free for entry level; charges for personalization (decoration items) or upgraded services such as playing background music, more online storage for album, etc. “Yellow Diamond” sign Showing in your QZone 29
  30. 30. Q-Zone • Features: blog, music box, album, mini house and garden, personalization and decoration, etc. • Every element is customizable with many choices. (Flash loading animation, Background, skin, media player, navigation, decoration, photo booth, and etc.) 30
  31. 31. • Qzone plant to show how healthy your Qzone Album • is –need QQ points to get them grow Pay to get more storage http://119489818.qzone.qq.com/ Earn 1 score per one visit Earn 3 scores per one content adding Earn 1 score per one visitor’s comment Earn 8 scores per 1 QQ money spent for QQ purchase. All the plants are levelized. You can only buy the plants within you level of score. 31
  32. 32. Music box http://93521903.qzone.qq.com/ • Music box can download and play music as background for the Qzone •All the music need to be purchased ($0.3/song) •Green Diamond Membership can download all music: RMB10/month ($1.5) • 32
  33. 33. Mini place • User can build different houses by purchasing all the furniture and decoration. 33
  34. 34. QQ Game 34
  35. 35. Buy entry animation for QQ games 35
  36. 36. Pay to play QQ games A simple online gamble game, QQ takes away 20% of the money Promotion example for Blue Diamond members QQ Dou Di Zhu 36
  37. 37. QQ Pet 37
  38. 38. Features and Monetization Virtual pet. Users don’t need to spend much time breeding pet on daily bases. But they need to complete the tasks regularly, e.g. breeding.  User can provide things that the pet needs daily by playing small games with it.  User can apply the special QQ pet’s winks in IM conversation to express the special feelings.  User can play with pet on the desktop.  Attend the pets’ community Monetization: • Buy some goods for pet. • It needs to pay to bring pet from dead • Join special social network needs money. 38
  39. 39. Even QQ numbers can make $$$! Monthly subscription fee (10 QQ coins/Month) + Initial fee ------------------------------- > $20/year/QQ ID QQ sells special numbers (millions of them), they are easier to remember, with lucky “6” or “8” in, associated to mobile numbers, birth day, year, events, you name it! 39
  40. 40. Thank You! 40

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